Jupiter Research predicts that virtual payments will reach $9.1 trillion in 2027. Virtual cards are here to stay for buyers and suppliers. They offer certainty of payment, which drives greater efficiency and data transparency across financial operations.
Business Benefits of Virtual Cards for Buyers
In addition to freeing up working capital, virtual cards enable buyers to gain the following benefits:
- Increased Security. Since virtual cards are not physical, they provide added protection against chargebacks and fraud, preventing millions of dollars in lost revenues and countless man-hours.
- More Control Over Spending. Virtual cards give buyers immediate control over spending limits, plus the virtual cards can easily be activated, deactivated or set up to be active for only certain days. This level of control also helps reduce internal fraud.
- Ability to Negotiate Better Terms. Negotiation tactics, such as accepting earlier payments in exchange for discounts or other customer benefits, drive value.
Business Benefits of Virtual Cards for Suppliers
Although suppliers have been somewhat slower to adopt virtual cards than buyers, there are several ways that virtual cards are beneficial to suppliers’ financial operations, including:
- Immediate Payments. Suppliers can receive payment immediately with virtual cards. There is no better certainty than immediate payment.
- Shared Costs. Buyers are often willing to share in the transaction costs or even finance entire transactions in order to access the benefits of commercial virtual card payments.
Enhanced Data Reconciliation and Analytics
Both buyers and suppliers benefit from the virtual card’s digital process, which reduces the reliance on old-fashioned Accounts Payable and Receivable processes, helping to ensure the validity of reconciliation. Its data-driven process also gives users access to insightful analytics that can help them improve back-end efficiencies and positively impact their financial operations.
Virtual Card Acceptance at the Tipping Point
With transaction volumes expected to increase by 280 percent between 2022 and 2027, virtual card acceptance is at the tipping point. However, streamlining the adoption of virtual cards for widespread adoption must include:
- Greater Collaboration. There needs to be greater collaboration in integration and acceptance processes among networks, issuers, acquirers and businesses.
- Advanced Technologies. The adoption of technologies, such as AI-driven payment authorization processes, can speed payment processing by eliminating the need for traditional authorization processes.
- Enterprise Resource Planning Adoption. Virtual cards need to be built into ERP systems to make the virtual payments processes more seamless to both buyers and suppliers.
How PayNation Can Help
Here are five ways that partnering with PayNation delivers revenue-generating benefits, helping you increase your business and residual revenue and capture a portion of the trillions of dollars in virtual card payments.
- Higher Satisfaction. Get more with PayNation’s B2B virtual card payments, resulting in greater client satisfaction.
- Omnichannel Payments. PayNation supports real-time, eCommerce, mobile, ACH, virtual and purchase cards anywhere goods or services can be purchased.
- Frictionless Integration. ERP, CRM and accounting software aligns seamlessly with PayNation’s payment solutions, ensuring a flawless user experience.
- Business Retention. Reduce churn and retain valuable business with a seamless payment experience.
- Data Protection. PayNation takes compliance and data protection seriously, meeting and exceeding industry standards for your peace of mind.
When you partner with PayNation, you are part of our extended family. We offer unwavering support, a dedicated integration team and a revenue-sharing deal to set you up for success.
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PayNation can help! Whether you currently have a payments processor or are new to B2B payments, connect with PayNation today and give your customers the digital payments support they need for the cutting-edge payments solutions of today.
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